Dow closes at lowest level in over a year
October 3, 2011 Leave a comment
Today the Dow Jones Industrial average closed at its lowest level in over a year. The Dow fell 258.08 points, or 2.4 percent, to 10,655.30. So, where’s the market headed next? Ask any two advisors and you’re likely to get two different opinions. In the past month I heard from one of my peers, schooled in fundamental analysis, who is convinced that we are fast approaching economic boom times. He is of the opinion that the market will be up 20% to 50% by this time next year. Another peer, schooled in technical analysis, is convinced that the Dow will be trading at 2400 by that time. For my part, I’m convinced that the market will be higher, lower or substantially unchanged. It seems like a safe bet.
Actually, there’s no need to bet at all. There are safe alternatives to the market that provide great returns without all the volatility. Even if you enjoy the securities roller coaster ride, you owe it to yourself to take some money “off the table.” This money should go into safe uncorrelated alternatives. How much should you be investing in safe alternatives? The following link with take you to a 2 minute video that describes one approach to determining appropriate allocation:
If you’d like to learn about safe investment alternatives for your IRA or other dusty money call me or reply to this email.